Activities that are included in the operating activities section of the statement of cash flows include which of the following activities?
A)Activities that obtain the cash needed to launch and sustain the business
B)Activities that increase or decrease long-term assets
C)Activities that create revenue or expenses in the entity's major line of business
D)None of the above

Question

Quizplus · Accepted Answer

Operating activities include cash inflows and outflows related to the entity's major line of business, such as sales of goods or services and payments for inventory or operating expenses. Option A refers to financing activities, while Option B refers to investing activities.

Activities That Are Included in the Operating Activities Section of the Statement